BTC Reaches $50,000 New Milestone, First Time in 3 Years
Latest update says that the price of Bitcoin has experienced rapid growth, breaking the $50,000 barrier for the first time since 2021. This significant milestone highlights Bitcoin’s incredible comeback, as the virtual currency has tripled in value since the start of the year, essentially recovering from a turbulent period that saw a significant 64% decline in 2022.
The rise to $50,000 indicates a renewed sense of investor enthusiasm and hope for the virtual currency. Several variables, such as expanding institutional usage, more transparent regulations, and more acceptance of cryptocurrencies in mainstream finance, have indicated to have contributed to the current surge in the price of bitcoin.
Bitcoin’s comeback coincides with a more considerable upswing in the cryptocurrency market, where the value of other digital assets has also increased significantly. The demand for Ethereum, the second-largest cryptocurrency by market capitalization, has also increased, and in recent weeks, its price has risen to all-time highs in settling at $2,639.60 with 5.53% increase in price (for the first time in 2024).
Tenacity, Consistency Describes Bitcoin’s Journey to $50,000, Ethereum Warms up
Recent observation shows that amidst enduring inflationary pressures and geopolitical unrest, investors are increasingly looking to Bitcoin to diversify their portfolios and use it as a store of wealth, hence its increasing demand.
In his latest article, David Pan from BNN Bloomberg says that Bitcoin has experienced both volatility and tenacity on its path to $50,000, overcoming considerable price swings and regulatory obstacles in the process.
In his comments, Matt Male, the head of market strategist at Miller Tabak & Co., said there have been many reports about unknown whales’ inflow of funds into the Bitcoin system. He added that these whales are having fun due to the latest positive price movement.
Bitcoin Recover Losses, Supporters Expect More Increase Amid Doubts
Enthusiasts and investors are harboring doubts amid ensuing excitement, doubting if the price trajectory can continue. Some commentators warn that the sharp increase in the price of Bitcoin may not be long-term sustainable due to possible technical constraints, regulatory obstacles, and market manipulation.
But supporters of Bitcoin are still upbeat about its future, pointing to factors like its expanding use cases, growing adoption, and the introduction of new investment products like ETFs as potential drivers of further price growth in the months and years to come. The report shows that the BTC has recently recovered all its losses starting from May 2022’s collapse of TerraUSD stablecoin.
Further investigation says that the collapse of TerraUSD to be responsible for the November 2022 failure of the FTX exchange. The introduction of nine United States spot BTC ETFs on January 11 has also been linked to the reason behind the upward trend of the BTC. This development compelled Grayscale Bitcoin Trust to convert its assets to ETF.
Major Cryptocurrency Companies Records Major Increase in Customer Activities
According to an industry analyst at Cumberland Labs, while commenting on the recent development, Chris Newhouse says the risk appetite is responsible for trickling over digital currencies. However, most cryptocurrency-related companies recorded a significant increase on Monday when this major increase happened.
Meanwhile, MicroStrategy recorded a 10% increase in trading volume, while Coinbase Global, an internationally acclaimed trading platform, rose by 4.8%. Marathon Digital Jumpin, a famous cryptocurrency mining company, recorded a 12% increase in its trading volume.
Also commenting on the development is Fadi Aboualfa, the Head of Research Department at Crypto-custodian Copper Technologies Ltd. Also, the Bitcoin halving, which is expected to complete its circle by April, is said to be responsible for the current uptrend in the price of BTC.
He said that happy buyers will end up influencing more comfortable buyers. Hence, the price continues to go up. Aboualfa also added that the BTC has maintained a strong positive momentum for some weeks now and could grow 10% higher than its performance last week.
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